Full PRefChem ownership to boost PETRONAS operations


BIMB Research said that with sole ownership, PETRONAS should have greater flexibility to accelerate turnaround strategies for underperforming assets.

PETALING JAYA: The full ownership of Pengerang Refining and Petrochemical (PRefChem) is expected to give Petroliam Nasional Bhd (PETRONAS) greater flexibility to streamline decision-making, improve operational efficiency and accelerate turnaround plans.

BIMB Research said the move followed PETRONAS’ agreement to acquire the remaining 50% equity interest in PRefChem from Saudi Aramco, giving the country’s national oil company full ownership of the integrated refining and petrochemical complex.

This marks the end of the equal-shareholding joint venture structure established under the Refinery and Petrochemical Integrated Development project within the Pengerang Integrated Complex.

“With sole ownership, PETRONAS should have greater flexibility to accelerate turnaround strategies for underperforming assets,” it said.

BIMB Research added that the move was particularly relevant, given PRefChem’s history of operational disruptions and reliability issues – especially within its refinery segment.

It also said PETRONAS had clarified that existing crude supply arrangements under current commercial agreements would remain unchanged.

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